chassis

Picked up a set of wipers for the W166 for $58 after a 15% first time customer discount. Thanks Santiago!

Walked through the showroom and a 2021 Maybach GLS600 had a sold sign on it with a $100k market adjustment. Total price approx $300k. Grey/silver over blue. Nice ride.

Salesman said he thinks MBAG/MBUSA might be migrating the go to market approach to be custom order only. Showroom inventory was very thin, this is in a large metro area.

He said the Europe market is this way today - no dealer stock, order only. Any comments on this?

SEPicks

Just today I saw a used GLS63 with just a bit over 1000 miles at a dealer in SoCal do a 60k markup over MSRP., used G550 with over 6000 miles for 80k MSRP. These weren't sold and were just listed, but just seeing these listed from the dealers are pretty crazy to me.

mercedesmax

Not surprised, Remember there is no 2022 GLS 600 for the US market.
Daimler has already said they won't build as many cars as before the pandemic. They like the higher transaction prices. Don't have to spend any money on incentives.

Eaton

Depends if they are able to make cars quickly. I think a lot of people (not all!) want to just go to the dealer and drive out with a new car. If there's nothing there and you have to wait 6+ months to get something, it could be a turn off.

Viper98912

I was very surprised when I was in Europe many years ago, and yes, the only cars at the dealership were a few for display and test drives. You had to order your car, and wait for it to arrive. Blew me away. I was used to going to a local dealership, see a bunch of colors, options, and eventually find the right combination I wanted, within a reasonable driving distance. I wanted a car, and I wanted a car today darnit!

With the pandemic and now the flip side with a chip shortage, I also think that the days of going to dealers that have 300+ cars to choose from on the lot are over. Dealers will have a certain number of vehicles in inventory for folks who are willing to purchase "today", but for the rest, it probably will be via order. This is good and bad, as MSRP's may start to become more firm and less room for negotiation. Which isn't necessarily a bad thing, as honest, up-front pricing where you don't have to deal with a salesman isn't a bad thing. And/or it will definitely make the incentive space rethink how it works, as you'll have to figure out other ways to entice a customer how to buy a car, because cutting an "extra $2000 today!" isn't going to work anymore.

It will be interesting to see what automakers stick with the current model today. If you can put someone in a car today, that's a win. And we all know how impatient we are as human beings...

Purple-Albie

I can confirm that in most (all?) of Europe, there are a few example cars in the showroom and for test drives (for nearly all brands), but you have to order to buy most of the time. My husband bought a CLS 53 AMG in 2019 off the showroom floor, but it was because someone had ordered it and then declined to take delivery for some reason. I ordered my GLS in June 2020, and took delivery April 2021. That is typical.

KrustyKustom

These market adjustments are nuts...

100k on remaining G63s
200k on Black Edition GTs
even 10-15k on regular GLEs/GLSs...

I am friends with a owner that has several MB dealers. He says with sales of higher optioned cars even at less volume they are making more money by far. Some higher demand models they end up taking the best offer on. I personally do not mind paying MSRP for something I really want and do not mind waiting for a custom order. But Market Adjustments are so crazy that I do not think the market can sustain the premium fees? who knows, maybe I am wrong.

Its interesting to see the MB brand go from trying to have everything to an entry level A class to Uber expensive Maybach models to small volume, premium priced (an no entry level) vehicles. With the upcoming shift to the EQS and beyond prices are certainly not coming down. Desirable models in the used segment will likely really hold their value.

Interesting times for sure to be a consumer.

mercedesmax

I don't think it is sustainable in the long run. Certainly for the next year or so.
I think you have to keep in mind that there are a lot of people out there with a lot of money. More so than ever before.
For these people, time is money. They are too busy to worry about having to spend extra for what they want.
An alien concept to people here, but it is real.
I do think with lower numbers of cars you will see transaction prices a lot closer to MSRP. No more 12% off.
The "volume" dealers will have to re-think their sales strategies.

Paxfobiscum

You guys should look at the Rolex market. No new inventory and if you wanted to buy a brand new stainless steel submariner, which retails for about $10,000, you have to order and wait 5 or 6 years.
Otherwise, you can buy a used 5 to 10 year old one for $25,000. A stainless steel watch, a quarter of the price of a brand new GLS 450

And why is this? Because Rolex, like Mercedes, know that there is a strong demand for their commodities.
And the less availability in the market, the stronger the demand and the higher the price.

I am an economist and I work in finance.
I also own a few rolexes and MBs.

.

chassis

Fully agree with @Paxfobiscum on supply-demand impact on price. I consider myself a hands-on economist in my day job in business leadership threading needles to achieve financial performance, and supply-demand impacts on price are easy to see.

places

The driver for Rolex is value and return. A car is a depreciating asset, unless you are getting a G or limited high line AMG the car will drop...period. Not with certain timepieces, PP, AP, or Rolex. Far more people can afford a 10K watch than a 100K car. What fuels the Rolex world is FOMO and instant return assuming you can acquire at msrp. With Mercedes it's strictly supply limitations coupled with social media blowing up that has created a feeding frenzy. The real truth will be revealed once we clear this supply issue in 2023/24.

Rolex forums are loaded with investment and return advice, whereas car forums are not. As for the 25K steel sub, not sure which model you are talking about unless a Hulk? Congratulations on owning a few Rolex watches, how special.

As for dealers going the European route, I can see this happening. Limited inventory at times commanding premium, or order your vehicle. However I can also see major market dealers demanding inventory to stay competitive as there is a strong market of buyers that buy same day/week and don't want to wait, will shop hard.

jbattan

I just bought a 2023 Maybach GLS600 for $2K below MSRP.

ILoveNY

great job

congratulations

fkim011

This is pretty good!

I bought my new 2023 at $5K off MSRP.